Korean Brokerage Discusses Raising Minimum Deposit Requirement for Chip Stock Leveraged ETF

BlockBeats News, July 15th - The Korea Financial Investment Association announced that the CEOs of 10 major asset management companies in the country discussed the implementation of investor protection measures for single-stock leveraged ETFs, including raising the minimum deposit requirement and adjusting the rebalancing trading hours.

According to the association's statement, the participants agreed that it is necessary to increase the minimum deposit requirement for investing in such leveraged products from the current level of 10 million Korean Won (approximately $6,714).

They also noted the need to enhance the market stabilizing role of liquidity providers. The Korea Financial Investment Association cited data from the Korea Capital Market Institute, stating that since the introduction of relevant leveraged ETFs, the estimated daily stock trading volume required for rebalancing is around 700 billion to 2.1 trillion Korean Won.